Ethereum co-founder Vitalik Buterin has withdrawn 16,384 ETH from his personal holdings to fund long-term development projects as the Ethereum Foundation (EF) enters a five-year period of "mild austerity." The move, announced on January 30, 2026, is designed to ensure the Foundation's financial sustainability while pursuing an aggressive development roadmap.
Buterin stated that the EF is trying to simultaneously achieve two goals: push forward core protocol development and ensure its own long-term financial survival. "My own share of the austerity is that I am personally taking on responsibilities that might in another time have been 'special projects' of the EF," Buterin said.
The withdrawn ETH, valued at tens of millions of dollars, will be deployed over several years to support open-source projects focused on privacy, security, and decentralization. Specific initiatives mentioned include Vensa (open silicon for security-critical applications) and ucritter (which incorporates zero-knowledge, fully homomorphic encryption, and differential-privacy features). Funding will also go toward encrypted messaging apps and privacy-preserving software.
Buterin also indicated he is exploring decentralized staking options, which would allow staking rewards to be directed toward these same development goals over time.
The announcement signals a strategic shift in focus for Ethereum. Buterin emphasized that mass adoption ("Ethereum everywhere") is no longer the primary aim. Instead, the priority is "Ethereum for people who need it", with a focus on self-sovereignty and infrastructure that enables cooperation without domination. He described the goal as providing tools for autonomy and safety as a basic right.
The Ethereum Foundation will maintain its core focus on Ethereum development, with performance, scalability, and decentralization remaining top priorities. Buterin called Ethereum "an indispensable part of the full-stack openness and verifiability vision." The announcement was met with positive responses from developers, with one highlighting excitement around "auditable trust from hardware to UI."
This organizational pivot comes as the price of Ethereum faces uncertainty, trading around $2,800 after a sharp sell-off in January, down roughly 6-7% over 24 hours and about 9-10% year-on-year. Analysts suggest a base case of consolidation between $2,600 and $3,000, with potential upside to $3,200-$3,400 if ETF flows turn positive.
